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8-K - FORM 8-K - CALGON CARBON Corp | l42585e8vk.htm |
Exhibit 99.1
News Release | ||||
Contact: Gail A. Gerono | ||||
412.787.6795 | ||||
www.calgoncarbon.com |
CALGON CARBON ANNOUNCES FIRST QUARTER RESULTS
PITTSBURGH, PA May 3, 2011 Calgon Carbon Corporation (NYSE: CCC) announced results for
the first quarter ended March 31, 2011.
The company reported net income of $8.5 million for the first quarter of 2011, as compared to net
income of $9.5 million for the first quarter of 2010. Net income for the first quarter of 2010 was
retrospectively adjusted to increase the gain on acquisitions to $2.7 million. As a result,
earnings per diluted share for the first quarter of 2010 as previously reported increased by $0.01.
On a fully diluted share basis, earnings per common share for the first quarter of 2011 were $0.15
versus $0.17 for the first quarter of 2010.
Net sales for the first quarter of 2011 were $124.4 million, a 20.8% increase over net sales of
$102.9 million for the first quarter of 2010. Calgon Carbon Japans (CCJs) sales, which were not
reported on a consolidated basis for the first quarter of 2010, accounted for approximately 83% of
the increase. Currency translation had a $0.9 million positive impact on sales for the first
quarter of 2011 due to the weaker dollar.
For the first quarter of 2011, sales for the Activated Carbon and Service segment increased 24.8%
as compared to the first quarter of 2010. The increase was primarily due to the above mentioned
CCJ sales.
Sales from the companys traditional business increased due to higher sales of activated carbon
products and services in four of its six market segments: municipal, industrial process,
respirator, and environmental water treatment. This increase was partially offset by lower demand
in the food and environmental air treatment markets. The decline in environmental air treatment
sales was the result of a change in mercury removal requirements in one Canadian province; the
temporary shut down of certain customers coal-fired electric generating units for maintenance; and
one customers decision to temporarily shift some production from coal-fired to hydroelectric
generating facilities.
Calgon Carbon Corporation 400 Calgon Carbon Drive Pittsburgh, PA 15205 412.787.6700
Equipment sales declined by 10.3% in the first quarter of 2011 versus the comparable period in
2010, principally due to lower revenue from carbon adsorption systems. This was partially offset
by higher revenue from UV systems.
An increase of 2.8% in Consumer sales for the first quarter of 2011 versus the comparable period in
2010 was attributable to higher demand for activated carbon cloth products. The company previously
announced its intention to exit the home wellness market where it provides PreZerve® products.
Net sales less the cost of products sold (excluding depreciation and amortization), as a percentage
of net sales for the first quarter of 2011 was 33.3%, versus 36.1% for the first quarter of 2010.
The decline was primarily due to sales from CCJ and revenue recognized on UV systems whose margins
were lower than the overall company average. Lower sales of activated carbon products for mercury
removal also contributed to the decline.
Selling, administrative and research (SG&A) expenses for the first quarter of 2011 were $22.5
million versus $19.7 million for the comparable period in 2010. The increase resulted from
expenses incurred by CCJ that were not reported on a consolidated basis for the first quarter of
2010. SG&A as a percentage of sales improved to 18.1% versus 19.1% for the first quarter of 2010.
Calgon Carbons board of directors did not declare a quarterly dividend.
Commenting on the quarter, John Stanik, Calgon Carbons chairman, president and chief executive
officer, said, The first quarter is typically Calgon Carbons weakest and should not be indicative
of performance for the year. Lower sales of Fluepac® carbons for the removal of mercury had an
adverse impact on results for the first quarter.
Overall, however, demand for activated carbon increased year-over-year. CCJs margins were up
sequentially, and we expect continued improvement throughout the year as we conclude the
integration process. We continue to believe that in order to meet customer demand in 2011 we will
be required to supplement activated carbon that we produce with lower-margin outsourced products.
However, margins in our traditional Carbon and Service business should improve as we continue to
make progress implementing our pricing and reactivation strategies.
Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in
services and solutions for making water and air safer and cleaner.
For more information about Calgon Carbons leading activated carbon and ultraviolet technology
solutions for municipalities and industries, visit www.calgoncarbon.com.
This news release contains historical information and forward-looking statements.
Forward-looking statements typically contain words such as expect, believe, estimate,
anticipate, or similar words indicating that future outcomes are uncertain. Statements looking
forward in time, including
Calgon Carbon Corporation 400 Calgon Carbon Drive Pittsburgh, PA 15205 412.787.6700 www.calgoncarbon.com
statements regarding future growth and profitability, price increases, cost savings, broader
product lines, enhanced competitive posture and acquisitions, are included in the companys most
recent Annual Report pursuant to the safe harbor provision of the Private Securities Litigation
Reform Act of 1995. They involve known and unknown risks and uncertainties that may cause the
companys actual results in future periods to be materially different from any future performance
suggested herein. Further, the company operates in an industry sector where securities values may
be volatile and may be influenced by economic and other factors beyond the companys control. Some
of the factors that could affect future performance of the company are higher energy and raw
material costs, costs of imports and related tariffs, labor relations, capital and environmental
requirements, changes in foreign currency exchange rates, borrowing restrictions, validity of
patents and other intellectual property, and pension costs. In the context of the forward-looking
information provided in this news release, please refer to the discussions of risk factors and
other information detailed in, as well as the other information contained in the companys most
recent Annual Report.
###
Calgon Carbon Corporation 400 Calgon Carbon Drive Pittsburgh, PA 15205 412.787.6700 www.calgoncarbon.com
Calgon Carbon Corporation
Condensed Consolidated Statement of Income
(Dollars in thousands except per share data)
(Unaudited)
Quarter Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Net Sales |
$ | 124,380 | $ | 102,927 | ||||
Cost of Products Sold |
82,989 | 65,791 | ||||||
Depreciation and Amortization |
5,540 | 5,077 | ||||||
Selling, Administrative & Research |
22,511 | 19,651 | ||||||
111,040 | 90,519 | |||||||
Income from Operations |
13,340 | 12,408 | ||||||
Interest Income (Expense) Net |
45 | 108 | ||||||
Gain on Acquisitions |
| 2,666 | ||||||
Other Income (Expense) Net |
(190 | ) | (303 | ) | ||||
Income From Operations Before Income Tax
and Equity in Income from Equity Investments |
13,195 | 14,879 | ||||||
Income Tax Provision |
4,718 | 5,515 | ||||||
Income from Operations Before Equity in
Income from Equity Investments |
8,477 | 9,364 | ||||||
Equity in Income from Equity Investments |
| 112 | ||||||
Net Income |
$ | 8,477 | $ | 9,476 | ||||
Net Income per Common Share |
||||||||
Basic and Diluted |
$ | .15 | $ | .17 | ||||
Weighted Average Shares
Outstanding (Thousands) |
||||||||
Basic |
56,124 | 55,708 | ||||||
Diluted |
56,893 | 56,725 |
Calgon Carbon Corporation 400 Calgon Carbon Drive Pittsburgh, PA 15205 412.787.6700 www.calgoncarbon.com
Calgon Carbon Corporation
Segment Data:
Segment Sales | 1Q11 | 1Q10 | ||||||
Activated Carbon and Service |
112,884 | 90,452 | ||||||
Equipment |
9,117 | 10,160 | ||||||
Consumer |
2,379 | 2,315 | ||||||
Total Sales (thousands) |
$ | 124,380 | $ | 102,927 |
Segment
Operating Income (Loss)* | 1Q11 | 1Q10 | ||||||
Activated Carbon and Service |
19,067 | 17,687 | ||||||
Equipment |
(382 | ) | (315 | ) | ||||
Consumer |
195 | 113 | ||||||
Income from Operations (thousands) |
$ | 18,880 | $ | 17,485 |
* | Before depreciation and amortization. |
Calgon Carbon Corporation 400 Calgon Carbon Drive Pittsburgh, PA 15205 412.787.6700 www.calgoncarbon.com
Calgon Carbon Corporation
Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 27,014 | $ | 33,992 | ||||
Restricted cash |
1,246 | 1,173 | ||||||
Receivables |
91,392 | 94,354 | ||||||
Inventories |
107,801 | 101,693 | ||||||
Other current assets |
39,729 | 40,836 | ||||||
Total current assets |
267,182 | 272,048 | ||||||
Property, plant and equipment, net |
198,783 | 186,834 | ||||||
Other assets |
42,315 | 42,681 | ||||||
Total assets |
$ | 508,280 | $ | 501,563 | ||||
Liabilities and Shareholders Equity |
||||||||
Current liabilities: |
||||||||
Short-term debt |
$ | | $ | 21,442 | ||||
Current portion of long-term debt |
2,926 | 3,203 | ||||||
Other current liabilities |
75,138 | 80,529 | ||||||
Total current liabilities |
78,064 | 105,174 | ||||||
Long-term debt |
24,226 | 3,721 | ||||||
Other liabilities |
49,960 | 49,430 | ||||||
Total liabilities |
152,250 | 158,325 | ||||||
Redeemable Non-Controlling Interest |
| 274 | ||||||
Total shareholders equity |
356,030 | 342,964 | ||||||
Total liabilities and shareholders equity |
$ | 508,280 | $ | 501,563 | ||||
Calgon Carbon Corporation 400 Calgon Carbon Drive Pittsburgh, PA 15205 412.787.6700 www.calgoncarbon.com